Question

Bank Reconciliation and Entries

The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $13,700. During November, the total cash deposited was $75,870 and checks written totaled $70,450. The bank statement indicated a balance of $25,720 on November 30, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

1. Checks outstanding totaled $11,460.
2. A deposit of $9,330, representing receipts of November 30, had been made too late to appear on the bank statement.
3. A check for $720 had been incorrectly charged by the bank as $270.
4. A check for $360 returned with the statement had been recorded by Collegiate Sports Co. as $630. The check was for the payment of an obligation to Ramirez Co. on account.
5. The bank had collected for Collegiate Sports Co. $4,930 on a note left for collection. The face of the note was $4,550.
6. Bank service charges for November amounted to $40.
7. A check for $1,140 from Hallen Academy was returned by the bank because of insufficient funds.

Instructions:

1. Prepare a bank reconciliation as of November 30, 20Y9.

Collegiate Sports Co.
Bank Reconciliation
November 30, 20Y9
Cash balance according to bank statement		$fill in the blank 58088803f065027_1
		fill in the blank 58088803f065027_3
	$fill in the blank 58088803f065027_5
	fill in the blank 58088803f065027_7
Total deductions		fill in the blank 58088803f065027_8
Adjusted balance		$fill in the blank 58088803f065027_9
Cash balance according to company's records		$fill in the blank 58088803f065027_10
	$fill in the blank 58088803f065027_12
	fill in the blank 58088803f065027_14
Total additions		fill in the blank 58088803f065027_15
	$fill in the blank 58088803f065027_17
	fill in the blank 58088803f065027_19
Total deductions		fill in the blank 58088803f065027_20
Adjusted balance		$fill in the blank 58088803f065027_21

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. 20Y9 Nov. 30		fill in the blank 45180902b047024_2	fill in the blank 45180902b047024_3
		fill in the blank 45180902b047024_5	fill in the blank 45180902b047024_6
		fill in the blank 45180902b047024_8	fill in the blank 45180902b047024_9
		fill in the blank 45180902b047024_11	fill in the blank 45180902b047024_12
b. Nov. 30		fill in the blank 45180902b047024_14	fill in the blank 45180902b047024_15
		fill in the blank 45180902b047024_17	fill in the blank 45180902b047024_18
		fill in the blank 45180902b047024_20	fill in the blank 45180902b047024_21

3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 20Y9, what amount should be reported as cash?
$fill in the blank

Answer 1

Collegiate Sports Co. Bank Reconciliation November 30, 20Y9
Cash balance according to bank statement		$ 25,720
Deposit of November 30, not recorded by bank		$ 9,330
Deductions :
Bank error in charging check as $720 instead of $270	($ 450)
Outstanding checks	($ 11,460)
Total deductions		($ 11,910)
Adjusted balance		$ 23,140
Cash balance according to company's records ($ 13,700 +$ 75,870 (-) $ 70,450 )		$ 19,120
Additions :
Proceeds of note collected by bank, including $380 interest	$ 4,930
Error in recording check as $ 630 instead of $ 360	$ 270
Total Additions		$ 5,200
Deductions :
Check returned because of insufficient funds	($ 1,140)
Bank service charges	($ 40)
Total deductions		($ 1,180)
Adjusted balance		$ 23,140

Date	Account Titles and Explanation	Debit	Credit
20Y9 Nov. 30	Cash	$ 5,200
	Notes Receivable		$ 4,550
	Interest Revenue		$ 380
	Accounts Payable - Ramirez Co.		$ 270
	(To record increase cash )
Nov. 30	Accounts Receivable-Hallen Academy	$ 1,140
	Miscellaneous Expense	$ 40
	Cash		$ 1,180
	(To record decrease cash )
3)	Amount should be reported as cash =	$ 23,140